Film tariffs push Hollywood to 'Endgame' as China shines as open hub

Editor's note: Min Rui is a culture journalist and a special commentator for CGTN. The following commentary reflects her own views.

On May 4, US President Donald Trump claimed on social media that the US film industry was “DYING a very fast death” and authorized a 100 percent tariff on all foreign-produced films imported into the United States, with the aim of bringing the film industry back to American soil.

However the market’s reaction was a thunderclap of dissent. Shares of Netflix, Paramount, and Warner Bros. plunged after the news broke –a big “no thanks” to this policy.

This development marks the first time that the “tariff war” has infiltrated the service sector, which has long operated on the principles of global collaboration and open markets. In 2024, the US media reported that the total service trade surplus of the United States was nearly $300 billion, giving it a huge advantage in the global trade services sector.

But here’s the kicker: the bigger that advantage, the more spectacularly it will crash and burn when this tariff debacle hits. So buckle up Hollywood–this is going to hurt.

Skyrocketing costs

In recent years, many American film companies have transferred their filming and post-production to countries like the United Kingdom, Australia, and Canada in order to cut costs and obtain tax incentives.

“Deadpool & Wolverine,” “Wicked,” and “Gladiator 2” may all be the brainchild of Hollywood studios, but their superpowers and magic were actually conjured up overseas.

Once the tariffs are in place, the production costs of major studios will soar significantly. It’s easy to assume their profits will nosedive like the Titanic’s fateful plunge. High-stakes blockbusters will be axed in a heartbeat. The shrinking production scales will further slash new releases and decimate jobs, pushing the film sector into a tight corner.

Global payback

Hollywood thrives on global collaboration yet foreign retaliation could bring disastrous consequences for the US film industry. In 2024, approximately 70 percent of global box-office revenue–some $30 billion–originated outside the United States and Canada.

Countries such as New Zealand and Australia have clearly stated that they will take countermeasures against the United States. Once various countries impose counter-tariffs, the US film industry will inevitably suffer a heavy blow in overseas markets.

Industry insiders pointed out that this could result in an increase in movie ticket prices for American films, forcing audiences to shift towards streaming media, and threaten to shake the very foundations of Tinseltown.

A California-sized showdown

Trump claims that he wants to protect the US film industry with the proposed tariffs, but the resulting “lights, camera, inaction” situation has raised questions about whether it's real industry protection or simply political theater.

Hollywood has long fueled California’s economy, pumping in more than $70 billion into the economy annually, and remains a Democratic stronghold. For many Democrats, the tariff is a stab in the back.

According to a report from FilmLA, on-location filming in Los Angeles fell 22percent in the first quarter this year. Facing damage to its pillar industry, on April 16 California Governor Gavin Newsom sued the Trump administration, demanding a halt to the tariff policy.

Whether Trump’s move is aimed at hitting California or truly protecting Hollywood, perhaps the people of California are the ones who know best.

China eyes a shared future

The United States and China are the world’s largest and second-largest film markets, respectively. China remains a crucial overseas market for Hollywood.

Even after China’s National Film Administration announced a moderate cut in US film imports in April, American movies such as “Thunderbolts,” “A Minecraft Movie,” and the Oscar-winning “A Complete Unknown” are still being screened across the country, vividly illustrating Chinese market’s inclusiveness.

On the export front, China’s animated hit “Ne Zha 2” is making its way to new countries and was recently released in Denmark, Norway, Sweden, Finland, Iceland and Türkiye. The movie has grossed over 15.8 billion yuan ($2.18 billion) globally, making it one of the top five films in the world –and inching ever-closer to "Titanic"by the day.

At the Beijing International Film Festival in late April, many international filmmakers expressed open confidence in the Chinese film market for its inclusiveness, vibrancy and abundance of new opportunities.

As the United States builds tariff walls, China is opening its doors wide to the global film industry, proving that cooperation works better than isolation while offering a path forward. For Hollywood, the answer may lie in China's vision of a “shared future.” Even in American blockbusters, superheroes don't win alone; they triumph as a team, like the Avengers.